Reliable Technical Action
I was pointed to a post earlier today which I couldn’t disagree with more. The author opined that trading this market is a ‘waste of time’ and that the ‘real’ money won’t be made until a month or two from now.
If that’s your attitude, you’ll be exactly right. Attitude is everything – especially in trading.
Using broad, absolute statements to ignore what’s right in front of you will help you be correct – only problem is, you’ll make no money trading. And isn’t that what trading is about? I’d rather make money than be right.
It’s dangerous to adopt the ‘waste of time’ mentality, now or at any other time. Someone’s always making money, and therefore opportunity always exists. Right now, whether you’re a day trader or a swing trader, this market is moving plenty right now. We just rallied 12% in 6 weeks – how is that not enough? If you can’t pull some good trades during a period like that, then this game isn’t for you anyway.
Beyond that, the technical price action of late has been textbook – does it get any better than that?
We’ve seen multi-day rallies followed by shallow pullbacks, with higher highs and higher lows established along the way. An uptrend line was tested several times before finally breaking Wednesday, and the reversal which has followed has been very decisive. So whether you prefer the long or the short side, there’s been ample opportunity for you.
Here’s a closer look for you:
Finally, don’t be delusional enough to think you can call weeks in advance when a ‘real’ move will begin. Remember, the market caters to nobody. It’s not about being wrong or right on the timing either, it’s more about wasting the time between now and then by waiting and not watching for opportunities which are surfacing regularly.
Stay on your toes out there, and shun all excuses – a lack of success can’t be blamed on circumstances. If you’re focused and you’re attentive to the price action, you’ll get paid for your time instead of thinking it’s a waste.
Trade Like a Bandit!
Jeff White
Trader, Producer of The Bandit Broadcast
Are you following me on Twitter yet?
Mark Wolfinger | Aug 12, 2010 | Reply
It is a waste of time for that person. Not for you.
Believing that the market offers opportunities that suit your trading style is necessary. Lacking that belief, it’s difficult to get out there and search for your best spots.
Maybe it’s laziness. Maybe it’s a current losing streak. But something has this trader unprepared for the markets. That makes the sidelines appropriate – but not for us.
TheStockBandit | Aug 12, 2010 | Reply
Hey Mark!
Excellent comments, thank you very much. I agree that for some who have been struggling it’s definitely appropriate to stay sidelined and figure that out. As you noted, preparation is everything! For those prepared, there’s plenty of opportunity in the current market.
Thanks again for stopping by, I always appreciate your insights!
Jeff
Joe Trader | Aug 12, 2010 | Reply
Jeff,
Excellent post. This market has definately been textbook! Even with elliott wave and fib analysis. Perfect 2nd wave and hoovered around the 61.8 retracement level before the break down. How could you not see that coming?
btw, I always look forward to your weekly video’s. They are always “right on the money”!
Keep up the great work and Good Trading,
Joe
TheStockBandit | Aug 12, 2010 | Reply
Hey Joe,
Thanks for stopping by and for your comments, they are appreciated! Also glad to know you like the weekly videos, I’ll keep ’em comin’!
Jeff
derek | Aug 13, 2010 | Reply
good post, sometimes a single day hatches a multi-month move so I always prepare the same
TheStockBandit | Aug 13, 2010 | Reply
Hey Derek!
Thanks for your comments, I’m glad you stopped by. Great point regarding preparation and routines, too. I totally agree, gotta cover all the bases and then see what the market brings.
Keep up the good work you do, I really enjoyed this week’s post!
Jeff